Discover Bank checking account
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After a long hiatus, Discover Bank is offering its Cashback Debit account once again for new customers. The account pays 1 percent cash back on up to $3,000 in monthly debit card purchases.
Its Cashback Debit account was a popular choice for checking customers until new applications were paused, but Discover ultimately brought the account back again for new signups in late May. Overall, Discover Bank earned 4.2 out of 5 stars in Bankrate’s review of the bank.
Here’s a rundown of Discover’s Cashback Debit checking account.
Discover Cashback Debit Account
Discover Bank’s Cashback Debit account pays 1 percent cash back on up to $3,000 in monthly debit card purchases, which is highly competitive for a checking account.
The account comes without fees, including no monthly, overdraft or nonsufficient funds fees. Moreover, the account offers a fee-free overdraft protection service. The account also features early direct deposit, giving you access to your paycheck up to two days early.
And although Discover is essentially an online institution, the bank is a member of the Allpoint and MoneyPass ATM networks, giving customers access to over 60,000 fee-free ATMs. Moreover, the bank’s app is highly rated on both the Google Play and Apple App stores.
Discover’s checking account was named Best Checking Account as part of the 2023 Bankrate Awards.
Alternatives to Discover Cashback Debit Account
The 1 percent cash back feature of the Discover Cashback Debit online checking account is a significant advantage for this account. Some consumers, however, prefer to reap rewards with credit cards that offer travel rewards or even more than 1 percent cash back.
Another option to consider is an interest-bearing checking account. Play your cards right and you can earn interest on your checking account funds while also reaping rewards on your spending with the right credit card.
As an online bank, Discover isn’t a great fit if you’re looking for a bank that can service your account in person. You may want to consider larger banks with a widespread branch presence such as Bank of America or Wells Fargo. But you will likely pay more fees and not get cash-back options.
Other banking products offered by Discover
Discover Bank offers a savings account, a money market account and 12 terms of CDs. Generally, its accounts pay a competitive yield.
- Its savings account doesn’t require a minimum opening deposit.
- Discover Bank’s money market account pays a slightly higher yield for people who have a balance of $100,000 or more.
- Discover Bank offers CD terms ranging from three months to 10 years.
Note: Product information and cash back percentage shown above are as of June 5, 2023.